L’Oréal Enters The Era of Augmented Beauty Services with Manhattan
- October 16, 2024
“By next year, every product L’Oréal sells in stores or supermarkets across Europe, except for Germany and the Nordics, has been processed through Manhattan Active solutions,” proudly announced Benoit Guelfucci, IT Program Director at L’Oréal, during his keynote address at Manhattan’s annual customer conference EMEA Exchange 2024 in Barcelona. His presentation, titled Unlocking Value: Into the Final Lap of L’Oréal’s Manhattan Active® Warehouse Management Journey, outlined the company's ambitious transformation and its journey toward embracing (as it describes it) advanced beauty services.
L’Oréal’s WMS journey
L’Oréal’s logistics journey is unfolding against a rapidly evolving environment marked by geopolitical disruptions, resource scarcity, and the increasing complexity of omnichannel commerce. To remain competitive and address these challenges, L’Oréal launched its Omnichannel Distribution Execution Solutions (ODES) initiative in 2019. This important program aimed to modernise the company’s internal distribution centres across Europe, Africa, APAC, and the Americas by equipping them with a new Warehouse Management System (WMS). From an operational perspective, L’Oréal sought a solution that could optimise its distribution network, enhance efficiency, and tackle the complexities of contemporary omnichannel logistics.
“We chose Manhattan Active because it provides ready-to-use market-standard functionalities,” Guelfucci explained. “One of its greatest strengths is that it integrates all logistics functions on a single unified platform. Additionally, it fits perfectly with our cloud-based architecture, which is crucial for L’Oréal’s future vision.”
L’Oréal’s transition to Manhattan Active Warehouse Management began early 2020 with the preparation of its mechanisation integration standards and the launch of its first pilot project. This pilot was a resounding success, setting the stage for further expansion. In 2022, L’Oréal rolled out a further five go-lives, followed by an impressive nine more in 2023.
“In 2024, we’ve already achieved twelve go-lives and have three more scheduled before the year ends,” Guelfucci shared. “By next year, we will have completed 41 distribution centres in total, an ambitious achievement for any company.”
Global deployment
L’Oréal has managed to implement the same Manhattan solution across six continents, adapting it to the unique logistics and distribution needs of each region. This global deployment was made possible by the support of a dedicated team of Manhattan consultants who have worked closely with L’Oréal for the past three years.
At the heart of L’Oréal’s digital transformation is the concept of ‘Beauty Tech’, a philosophy that emphasises the integration of advanced technology to deliver personalised, inclusive, and responsible beauty experiences and Manhattan Active Warehouse Management has played an essential role in this transformation. One key feature of the Manhattan Active Supply Chain platform that has empowered L’Oréal is its integrated Labor Management capabilities. This particular application has streamlined operations, enabling on-time delivery while harmonising data collection and performance metrics across all distribution sites. Additionally, L’Oréal is set to deploy new slotting functionalities that integrate demand forecasts, improving picking efficiency and saving valuable time.
A competitive edge for the future
As L’Oréal continues to push the boundaries of what’s possible in the beauty industry, its partnership with Manhattan Associates is providing the company with a distinct competitive advantage. The flexibility and scalability of Manhattan’s Active Solutions enable L’Oréal to adapt quickly to changing market conditions, while staying ahead of the fast-moving, consumer trends and expectations that frame the world of omnichannel commerce.
“Manhattan Active Warehouse Management is truly a game changer for us. It has given L’Oréal the tools to not only meet today’s challenges but also to thrive in the future. Our philosophy of ‘beauty for each’ is powered by Manhattan, and we are excited about what lies ahead,” ended Guelfucci.
About L'Oréal Group
For 115 years, L’Oréal, the world’s leading beauty player, has devoted itself to one thing only: fulfilling the beauty aspirations of consumers around the world. Our purpose, to create the beauty that moves the world, defines our approach to beauty as essential, inclusive, ethical, generous and committed to social and environmental sustainability. With our broad portfolio of 37 international brands and ambitious sustainability commitments in our L’Oréal for the Future programme, we offer each and every person around the world the best in terms of quality, efficacy, safety, sincerity and responsibility, while celebrating beauty in its infinite plurality
With more than 90,000 committed employees, a balanced geographical footprint and sales across all distribution networks (e-commerce, mass market, department stores, pharmacies, perfumeries, hair salons, branded and travel retail), in 2023 the Group generated sales amounting to 41.18 billion euros. With 20 research centers across 11 countries around the world and a dedicated Research and Innovation team of over 4,000 scientists and 6,400 Digital talents, L’Oréal is focused on inventing the future of beauty and becoming a Beauty Tech powerhouse.
More information on https://www.loreal.com/en/